I suggest you connect one side of your unpowered test light to chassis ground and the other to the low-tension terminal on the distributor, rotate the engine so the points "open", then turn one the ignition switch and observe the light.
Light "ON" = OK, then need to verify that light goes out when points close.
Light "OFF" = short at points or distributor feed-though, or possibly no power getting to switch side of coil or a bad coil.
You can view the parts breakdown, showing Key # 19, the insulating "bushing" that insulates the terminal stud at the outside, and through the distributor body, and Key # 18, which insulates the stud from the distributor body at the inside.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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